During this time 61,000 were being granted each day, according to figures from UK Finance, the body which represents the banks and other lenders. As a result of this action from lenders, one in nine mortgages in the UK are now subject to the mortgage holidays which allow borrowers to defer payments for three months to allow them financial breathing space during these difficult times.

The Chancellor Rishi Sunak announced lenders would be offering payment holidays to those struggling with their mortgage – both buy-to-let and residential – on 17 March. UK Finance said, for the average mortgage holder the payment holiday would amount to £260 per month of interest payments being suspended.

Many people would also benefit, it said, from the option of extending the scheme for up to three months. Stephen Jones, CEO of UK Finance, said: “Mortgage lenders have been working tirelessly to help homeowners get through this challenging period.

“The industry has pulled out all the stops in recent weeks to give an unprecedented number of customers a payment holiday, and we stand ready to help more over the coming months.”

UK Finance has stressed that mortgage holidays aren’t always the right solution for everyone. As such, lenders have a number of options open to help people who feel they might struggle financially during the crisis. The advice to anyone concerned about their financial situation is to check with their lender to find out more about the support available to how to apply for this.

Due to the volume of calls to lenders, the telephone lines are still busy, UK Finance warned. So customers who are concerned about making mortgage payments should, in the first instance, look at their lender’s website where they will find the latest information. Indeed, many lenders are offering borrowers the option to apply for a mortgage holiday through an online form.

It’s also very important you do contact your lender – either by phone or online – to arrange the mortgage holiday. Do not cancel the direct debit before the payment holiday has been agreed as this could impact your credit file.

Article sourced from What Mortgage website in an article on 4th April 2020 . Original full article can be viewed by clicking link below